Churn Deferred Revenue SaaS Payments 
Stax
MAY 20, 2024
The concept of unearned revenue can easily trip up SaaS companies that offer subscription services and products on a recurring basis. Unlike when selling ordinary products, you cannot recognize the revenue earned from a subscription all at once. So, what differentiates ‘earned’ versus ‘unearned revenue’?
Baremetrics
NOVEMBER 10, 2019
Since the original version of this post from early 2017, we’ve worked with many more SaaS companies and a common theme has been moving companies from a starter template to a more robust financial model. This model allowed me to work with dozens of SaaS startups using spreadsheets, while we built our financial modeling software Flightpath.
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Baremetrics
SEPTEMBER 10, 2021
In the case of a SaaS business, your most valuable assets are the contracts you have with your clients and the platform they use. Speaking of your users, it is important to understand how much revenue they are generating with the best possible estimates of your MRR and ARR. How are balance sheets unique for SaaS? Fixed assets 3.
Baremetrics
SEPTEMBER 15, 2021
Baremetrics makes it easy to collect and visualize all of your sales data so that you always know how much cash you have on hand, which clients have paid, and who you still owe services to. Check out what the MRR dashboard looks like right here: Baremetrics can monitor your SaaS quick ratio. Many SaaS businesses have zero inventory.
Kellblog
MARCH 6, 2019
Enterprise SaaS has drifted to a model where many, if not most, companies do multi-year contracts on annual payment terms. Most enterprise SaaS products are high-consideration purchases. Most SaaS vendors will jump at the opportunity to lock in a longer subscription term. How did we get here?
Baremetrics
NOVEMBER 2, 2021
You can often find yourself receiving money long before you provide agreed upon services or, conversely, providing services and then waiting for payment. But, what are the accounting ramifications of customers paying you before you render services? This puts you in the position of having “unearned revenue”.
Subscription Flow
SEPTEMBER 12, 2024
The idea that a company generates revenue at the time it receives cash is far outdated. Even more so for the businesses in the Software-as-a-Service industry. Instead, the accrual accounting principle known as “revenue recognition” is now under the spotlight. Why does the cash-based accounting lag behind?
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